Case Law Details
HCC-CPL (JV) Vs Union Of India And 9 Ors (Gauhati High Court)
Gauhati High Court held that Petitioner would be entitled to reimbursement of GST on differential amount of price variation of steel and GST paid by the Petitioner from the electronic credit ledger has to be taken into consideration while computing the Price Variation Clause (PVC) Claims of the Petitioner.
Facts- The Petitioner which is a joint venture participated in the tender process for construction of a Single Line BG Tunnel No.12 from CH.105840.00 to 115391.00 at CH.112623 and Adit-2 at 115391 between Tupul — Imphal in connection with a construction of a new railway line project from Jiribam to Tupul. The Petitioner having emerged as a successful tenderer was awarded the contract.
The main issue involved in the present writ petition is reimbursement of the GST on the differential amount of price variation of steel.
Conclusion- The GST legislation is a destination based tax meaning thereby GST is a consumption based tax and would effectively tax the consumer of such goods or services or both at the destination thereof or as the case may be at the point of consumption. The supply of steel by the Petitioner to the Railways makes the Railways the end user and therefore the Railways are required to bear the brunt of the final tax amount upon the supply of steel.
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